SynMax Research:
Baker Hughes (BKR)
Baker Hughes continues to benefit from strong market tailwinds in LNG, power generation, and offshore. Q3 2025 North America revenue was up 6% sequentially, the opposite of the industry’s current downtrend.
Patterson UTI (PTEN)
U.S. activity levels stabilized towards the end of Q3 2025, and while the company expects normal seasonality in completion activity during the fourth quarter, the company anticipates activity to remain relatively steady into 2026. Patterson believes the full impact of the moderation of activity over the past six months is yet to be fully reflected in U.S. oil production. Patterson believes current industry activity is already below levels needed to hold U.S. oil production steady.
Any further rig count declines would likely result in additional pressure on U.S. oil production volumes for an extended period, which could negatively impact global oil supply in 2026. For natural gas, the company continues to see a strengthening outlook as physical LNG takeaway begins to come into focus, which is expected to result in higher natural gas drilling and completion activity in 2026.
Precision Drilling (PDS)
Q3 2025 revenue was 3% lower compared to Q4 2024, representing a relative outperformance versus industry drilling rig activity declines of 15% in Canada and 7% in the U.S. over the comparable period. Canada averaged 63 active drilling rigs in Q3 2025, a 13% decrease in rig utilization days from Q3 2024, reflective of lower industry activity.
The U.S. averaged 36 active rigs in Q3 2025 compared to 35 in Q3 2024, while industry activity was down 40 rigs over this same period. For the past two quarters, Precision’s U.S. rig utilization days increased 24%, while industry activity declined 8%.
In the U.S., the company is currently operating 39 drilling rigs, an increase from an average of 30 rigs in the first quarter of 2025, and Precision continues to see strength in natural gas basins such as the Haynesville and Marcellus. Precision is encouraged by the quality and quantity of customer conversations and the increase in overall natural gas activity.
In the U.S., while oil rig activity continues to be challenged, the year-to-date natural gas rig count has increased approximately 20% as customers are becoming more constructive on LNG and AI demand. Precision has capitalized on these emerging opportunities in natural gas basins such as the Haynesville and Marcellus and increased its U.S. drilling rig utilization days 24% over the last two quarters. Precision currently has 39 rigs active and continues to have encouraging customer conversations that could result in additional activity increases.